Mumbai: Air India may have delivered significant improvement in its operational and financial performance in the past few quarters, but the existence of several structural issues, unless addressed, would upset the applecart, says global aviation consultancy Centre for Asia Pacific Aviation (CAPA) in a detailed report on the national carrier.
“Turnaround efforts are hampered by poor asset utilisation and low labour productivity. A comprehensive review of the business model is required across domestic, regional, international and long-haul operations as there are fundamental weaknesses in each of these domains. The management is faced with huge internal challenges, a fast changing external environment and excessive government intervention,” CAPA says.
The significance of this critical analysis is that it comes in the wake of the government allowing foreign airlines to pick up stake in Indian airlines.
15/02/13 Lalatendu Mishra/The Hindu
